Exam 10: Bringing in the Supply Side: Unemployment and Inflation?

A recessionary gap exists when aggregate demand is above the full employment level of output.

The existence of an inflationary gap or an recessionary gap depends on the

A shift outward of the aggregate supply curve could be caused by

Figure 10-9 -Figure 10-9 illustrates a period of

What would be the likely result of a recessionary gap? If this leads to a fall in the nominal wage what impact it would have on the aggregate supply curve and on recessionary gap?

Stagflation is the conjunction of

An inflationary gap will occur when

Figure 10-4 -In Figure 10-4,if full employment occurs at 5,000 and the price level is currently 130,then we can expect the

The aggregate demand and aggregate supply curve intersect

Figure 10-1 -If the price level in Figure 10-1 were 110,

The federal government increases spending by $50 billion and the main effect is an increase in the price level.It must be t that the economy is operating on the

The underlying cause of inflation is

A change in the aggregate price level moves the economy along a given aggregate supply curve.

During 2008-2010,the U.S.economy showed signs of a(n)

Many economists are in favor of increased immigration of adult foreigners who possess high levels of skills and education.Why?

The typical result of an adverse supply shock is

How are aggregate supply and stagflation related?

Figure 10-2 -In Figure 10-2,which segment of the aggregate supply curve has the largest multiplier effect?

A recessionary gap exists when

The concept of aggregate supply is a